Global Markets Business
We promote market-related business (bonds, forex, equities, derivatives) and are responsible for Asset Liability Management (ALM).*
* ALM: Integrated management of liquidity risk and interest rate risk inherent in assets (loans, etc.) and liabilities (deposits, etc.)
Medium- to Long-Term Strategy
Naoto Hirota
Senior Managing Executive Officer
Group Head, Global Markets Business Group
- •Secure a global presence for the MUFG brand and become a strong market player boasting distinct competitive advantages in Japan and Asia
- •Optimize global markets business functions throughout the Group to strengthen S&T operations. In particular, we will integrate domestic and overseas trading functions and sales functions at The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) and subsidiaries of Mitsubishi UFJ Securities Holdings Co., Ltd. (MUSHD), providing one-stop services for customers.
- •Adopt a more sophisticated balance-sheet management method encompassing yen and foreign currencies globally
Key Operating Companies
- •Operating globally, BTMU maintains bases in major trading centers, such as Tokyo, London, New York, Singapore and Hong Kong.
- •Mitsubishi UFJ Trust and Banking Corporation (MUTB) and MUSHD also employ a robust international network encompassing Japan, Europe, the Americas, Asia and Oceania. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., (MUMSS); a core subsidiary of MUSHD is operating in Japan.
- •MUFG Union Bank N.A., the Bank of Ayudhya Public Company Limited (Krungsri) and BTMU’s Chinese subsidiary are also involved in the global markets business.
Fiscal 2015 Review
Fiscal 2015 Earnings Summary
Gross profits decreased 4.2% (¥27.9 billion) year on year to ¥633.8 billion. Net operating profits declined 6.7% (¥30.6 billion) year on year to ¥426.7 billion.
In the S&T business, we improved our sales structure while enhancing our product lineup, achieving our initial profit target with steady growth in transactions with investors and non-Japanese corporations.
In ALM operations, we focused on the integrated management of yen- and foreign currency, minimizing the negative impact of U.S. interest rate hikes, including the rise in USD funding costs. Our balance of net unrealized gains on available-for-sale securities improved considerably.
Sales and Trading
In fiscal 2015, we steadily pushed forward with the development of an optimal Groupwide operating strucure. In February 2016 we integrated a London subsidiary of MUSHD and a local BTMU dealing room as part of initiatives to consolidate dealing rooms at various locations. (Please see “FOCUS” for details).
We will continuously advance our integrated S&T business to provide one-stop high-quality services capable of fulfilling customers’ expectations by enhancing our capabilities to offer competitive prices, propose sophisticated solutions and provide a wide range of products.
ALM
We were able to improve profitability and the sustainability of liquidity risk through integrated balance-sheet management encompassing yen and foreign currencies. Also, we posted record-high unrealized gains on available-for-sale securities by taking advantage of lowering interest rates.
Going forward, the environment surrounding our ALM operations is expected to remain harsh due to such factors as a negative interest rate policy. However, we will overcome these adverse factors by drawing on our robust funding platform and applying a more sophisticated balance-sheet management approach.
FOCUS: Development of Optimal Groupwide Operating Structure
In London, New York and Hong Kong, MUFG integrated the dealing rooms of BTMU and MUSHD subsidiaries. In Tokyo, the dealing rooms of BTMU and MUMSS were relocated to the same building in August 2016. In fiscal 2016, we expect the full-scale optimization to be completed, thereby helping MUFG provide more sophisticated one-stop service to our diverse customers.
